Journal Article

Quantitative easing in the United Kingdom: evidence from financial markets on QE1 and QE2

Michael A. S. Joyce, Nick McLaren and Chris Young

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 28, issue 4, pages 671-701
Published in print January 2012 | ISSN: 0266-903X
Published online December 2012 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/grs035
Quantitative easing in the United Kingdom: evidence from financial markets on QE1 and QE2

More Like This

Show all results sharing these subjects:

  • Monetary Policy, Central Banking, and the Supply of Money and Credit
  • Money and Interest Rates

GO

Show Summary Details

Preview

During the recent financial crisis the Bank of England, like many other central banks, loosened monetary policy using both conventional and unconventional measures. The main unconventional measure used by the Bank was the policy of asset purchases—mainly of government bonds—financed by the creation of central bank money, so-called quantitative easing (QE). During March 2009 to January 2010 and October 2011 to May 2012, the Bank completed asset purchases of £200 billion (QE1) and £125 billion (QE2), respectively. The decision to resume purchases in July 2012 will mean that by November 2012 the Bank will have bought a total of £375 billion of assets, equivalent to around 25 per cent of annual GDP. This article reviews the transmission channels through which asset purchases operate and assesses the impact of QE1 and QE2 on financial markets.

Keywords: quantitative easing; asset purchases; monetary policy; E43; E44; E52; E58

Journal Article.  12197 words.  Illustrated.

Subjects: Monetary Policy, Central Banking, and the Supply of Money and Credit ; Money and Interest Rates

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.